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INVESTORDAY
22 MARCH 2018
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Build Upon Our
Position of Strength
Strong returns since
formation in 1997…
…provides solid foundations
for next stage of growth
/ 7
Focus Areas for Growth
By 2022, we expect steady state revenue of more than
S$400m per annum from our Passenger-to-Freighter business
Strengthen Core Businesses
| Aerospace
Strengthen and
grow engineering
and MRO
Invest in new
growth areas
Seed the
future with
unmanned
technologies
/ 9
Enhance our
product offerings
for the future
Strengthen US
business to
position for upturn
Grow our
environmental
engineering
business
By 2022, we expect Marine sector revenue to recover
to 2013 to 2014 levels, subject to the business cycle
Strengthen Core Businesses
| Marine
/ 10
Pursue Growth Opportunities
| Defence Export
Leverage
proven
successes
in defence
capabilities and
export wins
Focus on
developing
targeted products
and solutions
Focus on
specific
markets
/ 11
Significant
and growing
market
opportunity
Build upon core
competencies
and end-to-end
capabilities
Leverage
Singapore track
record; positioned
for overseas
success
Pursue Growth Opportunities
| Smart City
Expect Smart City revenue of S$1b in 2017 to more than
double by 2022
Icon to be
amended to
have >2x in
circle
/ 12
Our Smart City Offerings and Track
Records Match Needs of Smart Cities
/ 013/ 13
Develop Businesses through
New Enterprises and Ventures
Judicious evaluation
of growth opportunities
Strategic Fit
Ability to Win
Market Attractiveness
Strategic Analysis
Internal Rate of
Return ThresholdNet Present Value
Go/ No-go Investment
New growth
opportunities
Health Tech
Digital
1
2
3
4
…
…
/ 14
Recognise Challenges and New
Realities as We Pursue Growth
Singapore as
important
reference market
Future growth
largely from global
markets
Leverage strength
of integrated
approach
New go-to-
market models
and M&A focus
/ 15
Aspiration: Global Technology,
Defence & Engineering Powerhouse
/ 16
People & Culture
People are
our strengthsStrengthen
leadership bench
• Build strong sense
of purpose
and belonging
• Strengthen capacity
and capability
for growth
• Drive key focus areas
- Shared Services
- Digitalisation
- New lines of businesses
/ 17
Customers & Marketing
/ 18
ST Engineering
Masterbrand
Build marketing presence
and capabilities
Develop new
capabilities
Technology & Innovation
Build, partner and acquire
to develop technology capabilities
/ 19
Capacity For Growth
Financial
Strength
• Strong balance
sheet provides
capacity to grow
and sustain
dividends
• Cost
optimisation
through Shared
Services
• Cumulative net
savings of
~S$150m over
next 5 years*
• Disciplined
approach to
go-to-market
models and
M&A
Efficiency &
Scalability
Portfolio
Management
Disciplined
Growth
• Diversified
portfolio
• Unlock value
and recycle
capital
/ 20
* versus business-as-usual
Strong Order Book
NEAR
TERMStrong order book of
S$13.2bprovides stability
and visibility on
near-term revenue
and cash flows
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Poised for Success
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Aviation Market Outlook
is Positive
/ 24
Sources: Boeing, Oliver Wyman, IBA, Counterpoint
44Kpassenger
aircraft by 2036
3Kdedicated
freighters by 2036
MRO Landscape
Key challenges:
/ 25
Strengthen and
grow engineering
and MRO
Invest in new
growth areas
Seed the
future with
unmanned
technologies
Strengthen Core Businesses
| Aerospace
/ 26
Strengthen and Grow
Engineering and MROMaintain lead through disciplined management,
safety culture and customer focus
/ 27
Strengthen Engineering and MRO
| PTF ConversionsEstablished leader through design and engineering capability
Strengthen portfolio of freighter solutions and extract incremental MRO synergies
/ 28
Strengthen Engineering and MRO
| Leverage on Technology
Our aim:
• E-enable our
workforce
• Improve customer
stickiness
• Offer new solutions
/ 29
Grow MRO
| Increase capacity and global footprintStrengthen regional presence in growth regions and key markets
/ 30
Source: Oliver Wyman
Invest in New Growth AreasAdjacencies that add value to MRO and offer competitive advantage via IP
/ 31
Seed the Future
Develop technologies that shape autonomous
networks and freighters
/ 32
Strengthen and
grow engineering
and MRO
Invest in new
growth areas
Seed the
future with
unmanned
technologies
Strengthen Core Businesses
| Aerospace
/ 33
Strengthen Core Businesses
| Marine
Strengthen US
business to
position for upturn
Enhance product
offerings for the
future
Grow
environmental
engineering
business
By 2022, we expect Marine sector revenue to recover to 2013 to 2014
levels, subject to the business cycle
Icon to be amended
/ 35
Competency in Naval Segment
Provides Resilience Against Downturn
Global Shipbuilding Orders
by mDWT (Last 10 Years)
Global naval shipbuilding
revenue forecast (US$b)
Sources: Barry Rogliano Salles, Clarksons Platou Source: Frost & Sullivan
Our business is cyclical in nature … … however heightened geopolitical
tensions increase defence spending
Year Year
/ 36
Strengthen US Business
to Position for UpturnWhy acquire rig repair assets?
• Invest at bottom of business cycle; acquire rig repair capabilities
• Superior location; closest to rigs deployed in Gulf of Mexico
• Reap operational synergy among the US yards
/ 37
Strengthen US Business
to Position for Upturn
• Gradual recovery in Gulf of Mexico (GoM) rig demand
• Increased defence spending with Trump’s administration augurs well with our US’
capabilities
Positive outlook in the US
Source: Seabrokers Feb‘18
Source: Morgan Stanley Jan’18
Year
Year
Source: Annual Plan for Construction of Navy Vessels for FY 2019
/ 38
GoM
Rig
Utilis
ation
(%
)
Execute Projects Well and Target
Addressable Markets
/ 39
Leverage Technology to Improve
Operational Efficiency
Yard of the future
Smart
Engineering
Smart
Manufacturing
Smart
Workplace
Smart
Warehouse
Smart
Asset Mgmt
Integrate
Product
Lifecycle
Management
with Design
and
Engineering
Automate
manufacturing
process via
robots and
video
analytics
Expand
usage of
sensors and
wearables to
create a safer
workplace
Use
technology to
track and
monitor
movement
of goods
Incorporate
technology
to track
utilisation,
condition
monitoring
and preventive
maintenance
/ 40
Enhance Product Offerings
for the Future
In-house Advanced SMS2* (NERVA)
equipped with:
• Intelligent Power Management
System
• Sense Making System
• Decision Support System
* Ship Management System & Sense Making System (SMS2)
/ 41
Develop a Suite
of Unmanned Solutions
• Unmanned Solutions
• Defence
• Para-military
• Commercial
• Other niche markets
• Unmanned ship-to-
shore connectors
• Unmanned
maritime platforms
/ 42
Improve Margins through
Cost Optimisation
Promote
Shared Services
• Reduce overhead
costs
• Drive alignment to
group’s policies
Improve
productivity
Increase
collaboration
• Continue to invest in
technology and automation
• Captured ~10% efficiency
improvement year-on-year
• Provide fast turnaround
engineering solutions
• Share design expertise
and leverage proven ship
designs
/ 43
Smart City: Grow Environmental
Engineering Business
Smart Environment
Solid waste
management
Water
treatment
Waste water
treatment
/ 44
Marine Business is
Strategic to the Group
/ 45
Strengthen Core Businesses
| Marine
Strengthen US
business to
position for upturn
Enhance product
offerings for the
future
Grow
environmental
engineering
business
By 2022, we expect Marine sector revenue to recover to 2013 to 2014
levels, subject to the business cycle
Icon to be amended
/ 46
Pursue Growth Opportunities
| Smart City
Significant
and growing
market
opportunity
Build upon
core competencies
and end-to-end
capabilities
Leverage
Singapore track
record; positioned
for overseas
success
Expect Smart City revenue of S$1b in 2017 to more than double by 2022
/ 48
Why Smart City?
By 2050, 86% of the
developed world and 64%
of developing world will
be urbanised
Strain on essential
public services
By 2040, developing
countries will consume
65% of energy
By 2025, two-thirds of
the world’s population
would face water
shortages
Rising global average
temperature
Extreme weather
conditions
By 2050, population aged
over 60 is set to double
to over 2 billion
Significant increase in
dependency ratio while
birth rate continues to fall
UrbanisationResource Scarcity
Climate ChangeDemographic
Change
Sources: United Nations Dept of Economic & Social Affairs, World Wildlife Fund, various/ 49
Smart City Global Market
Global Market
2016 - 2025
Global Market, by Major
Regions, 2025
Sources: IHS insights (2016) Expert interviews;
Frost & Sullivan (2017)
Sources: Frost & Sullivan (2017);
Persistence Market Research Pvt. Ltd
Ma
rket
Op
po
rtu
nit
y (
US
$)
/ 50
Our Smart City Global Presence
/ 51
Leverage Singapore Track Record
/ 52
Our Smart City
Solutions
/ 26/ 53
End-to-end Solutions –
Our Unique Differentiator
Enabled by integrated architecture/ 54
Public Safety & Security
/ 56
Public Safety & Security
Physical Security Solutions
Aviation Security
• Airport Operations
Collaboration System
• Air Traffic Smart Tower
• Communication and
Aircraft Identification
• Counter-Drone System
Maritime Security
• Seaport Security
• Coastal
Surveillance
• Vessel Tracking
• Asset Tracking
Key Installation Security
• Wide Area Security
• Perimeter Security
• Checkpoint Security
• Integrated Security
Management
/ 57
Cyber Security
/ 58
Grow Environmental
Engineering Business
Build on our first
success in JIDP*
US$185b addressable
market in APAC & MEA
• Leverage track record
to penetrate key target
markets
Smart water and waste
management technologies
• Use analytics to optimise
plant operations, improve
yield; reduce operational
and maintenance costs
Grow recurring income
through
• Public Private Partnership
and operation and
maintenance of infrastructure
assets
Cultivate an inventory
of smart technologies
Grow recurring
income streams
* Jurong Island Desalination Plant (JIDP)
/ 60
Smart Sensor Networks Deployment
/ 61
Internet of Things (IoT) Solutions
for Smart Cities
Integrated platform to enable smart city management solutions
IoT Platform and
Data Analytics
Software
Application
Traffic
Counters
Smart
Lighting Control
Waste
Sensors
Sewage Level
Monitoring
Parking &
Place Detection
Automatic
Meter Reading
Gateway
Noise &
Pollution Sensors
Smart Street Lighting/ 62
Legend
Integrated Estate Management
Applying data analytics and artificial intelligence to Smart Cities
EnvironmentLift Monitoring
Utilities Lighting
Gateway Water Meter SensorNoise & Temperature/ Humidity Sensor / 63
Digital Connectivity
through Satellite
Source: Ericsson Mobility Report, Nov 2016
/ 64
World Leader in
Satellite Communications
Close partnership with major satellite operators
Strong presence in key mobility and defence markets
75% of the world’s top 20 operators use our enterprise satellite
communication (satcom) system
Significant market share in global satcom TDMA* sites in service
MARITIME
60%AVIATION
46%MILITARY
41%
*Time-Division Multiple Access (TDMA)
Source: COMSYS VSAT Report, 14th Edition
/ 65
Digital Connectivity through Satellite
Developing differentiating products to address the growing
aviation and connected car markets
/ 66
Our Vision of Smart Mobility:
Connected, Seamless & Integrated
/ 68
Engineering the Future of Mobility
Operationalise new
mobility concepts
through leveraging
our end-to-end
capabilities
Leverage track
record in
Singapore
/ 69
Smart Rail Suite Solutions:
Strong Track Record in Rail
Transportation
/ 70
Smart Rail Suite Solutions:
Leading Solutions
Complete and comprehensive range of rail electronic
products and solutions
/ 71
Intelligent Road Transport Solutions:
Strong Track Record
/ 72
Intelligent Road Transport Solutions:
Suite of multimodal transport solutions
/ 73
Smart Mobility Platforms:
Building on Deep Mobility Expertise
50 years of engineering track record
Strong foundation in technologies and capabilities
/ 74
End-to-end Transportation
Solution: Competitive Edge
Autonomous Buses for “First-” & “Last-Mile”,
as part of the future Smart Mobility Systems
Leverage Singapore’s Smart Nation ecosystem to
accelerate speed of operationalisation
Participate in full value chain
/ 75
Autonomous Public Transport
Solutions
*Mobility on Demand Vehicles (MODV)
Operationalising Bus Fleets
/ 76
Autonomous
Public Transport
Solutions:
Leverage
Singapore
Ecosystem
/ 77
Smart Robotics for Every Smart City
Healthcare
Logistics
Industrial
Airport
SecurityHospitality
/ 78
Build Robotics Business
/ 79
Build Robotics Business in
Other Industry Verticals
Airport
Automation
Leverage capabilities for logistics automation in airports,
seaports and warehouses
Logistics
Automation
Industrial
Automation
Partner local players and system integrators to:
• Enhance regional market penetration
• Collaborate on industrial automation
/ 80
Pursue Growth Opportunities
| Smart City
Significant
and growing
market
opportunity
Build upon
core competencies
and end-to-end
capabilities
Leverage
Singapore track
record; positioned
for overseas
success
Expect Smart City revenue of S$1b in 2017 to more than double by 2022
/ 81
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/ 90Figures shown are estimated addressable market size
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Customers & Marketing
ST Engineering
Masterbrand
Build marketing presence
and capabilities
Develop new
capabilities
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*
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Poised for Success
• THANK YOU
THANK
YOU
